Debt Recycling - How or a better strategy??

Discussion in 'Finance & Banking' started by Jimmy D, 15th Jul, 2016.

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  1. Jimmy D

    Jimmy D Well-Known Member

    Joined:
    19th Nov, 2015
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    Location:
    Tas
    Hi There,

    I was wondering if there was a better solution to my problem?
    Any advice would be very appreciated.

    I had a $90k equity loan on my PPOR funding part of an investment property.
    I have an investment loan for the remaining amount on the investment property. Property purchased about 3 years ago with equity of approx. $100k.
    Long story but when I sold my PPOR the equity loan got payed out by sale proceeds.

    I am soon to purchase a new PPOR, my home loan will be an extra $90k larger and that portion is not tax deductable (non investment related).

    Is there a way of paying the PPOR down $90k and making it tax deductable?

    I know of Debt recycling by capitalising investment costs (ex interest) and paying down PPOR debt with rental funds but this is a slow process.

    Are there other options / advice that may help?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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